Bloomberg Surveillance · Thursday, September 24, 2026
An analyst suggests the bond market is approaching a 'buy zone,' indicating a potential overshooting in current pricing relative to economic demand. They believe a near-equilibrium has been found, offering some value, particularly on the front end of the yield curve.
“I think it's getting in the zone, to be honest. I think we are starting to overshoot a little bit. In terms of what we know about the demand story right now versus about 100 basis points or so of Fed hikes, I feel like we found a nice equilibrium right now where there's some value coming up.”
“Just on the front end, as you think about what the floor is for hikes and where the ceiling might be, what's the range of outcomes you and the team are discussing at the moment?”
“I would kind of ballpark three to four as the floor. That's roughly where we are priced for right now. I think it will take some sort of accident for us to not get to that level in terms of a growth accident, labor market accident.”